Valued at a market cap of $62.9 billion, Freeport-McMoRan Inc. (FCX) is a leading mining company headquartered in Phoenix, Arizona. It is primarily engaged in the extraction of copper, gold (GCZ25), molybdenum, silver (SIU25), and other metals and plays a critical role in supplying key metals essential for global infrastructure, renewable energy, and advanced technologies.
Shares of this mining company have lagged behind the broader market over the past 52 weeks. FCX stock declined 2.6% over this time frame, while the broader S&P 500 Index ($SPX) has soared 16.6%. Nonetheless, on a YTD basis, the stock is up 13.5%, outpacing SPX’s 8.3% gain.
Narrowing the focus, FCX has underperformed the Ishares Copper And Metals Mining ETF’s (ICOP) 5.4% return over the past 52 weeks and 18.3% uptick on a YTD basis.
Freeport-McMoRan dropped a solid beat on July 23 - Q2 revenue jumped 14.5% year over year (YoY) to $7.6 billion, and EPS climbed 17.4% annually to $0.54, both ahead of Wall Street’s targets. Stronger copper and gold prices, plus higher sales volumes, gave the quarter a solid lift.
But the market was not impressed. Shares slid 2.1% post-earnings, as traders zoomed in on what’s next – not what’s done. Despite bullish catalysts like the 50% copper tariffs and a solid gold sales boost, Q3 guidance remained flat. Copper sales are expected to hold steady, while gold and molybdenum projections took a hit.
For the current fiscal year, ending in December, analysts expect FCX’s EPS to grow 22.3% YoY to $1.81. The company’s earnings surprise history is mixed. It met or surpassed the consensus estimates in three of the last four quarters, while missing on one occasion.
Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” That's based on 10 “Strong Buys,” two "Moderate Buys,” and six “Hold” ratings.
This configuration is more bullish than two months ago, when nine analysts suggested a “Strong Buy” rating.
On July 23, Sam Crittenden from RBC Capital maintained a “Hold” rating on FCX stock, with a price target of $54, which indicates a 24.9% potential upside from the current levels.
The mean price target of $51.64 represents a 19.5% premium from FCX’s current price levels, while the Street-high price target of $57 suggests an upside potential of 31.9%.
